Watch MADU

Leader · 1 Watch MADU Tue Feb 08, 2011 10:46 am

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Even at the price band there is a high buying pressure. this price band is a good chance to collect maximum number of shares. gud luck frnds. its ur money. take ur risk. i'l give u a gud advise. buy shares when others sell, and sell when others buy. this is the time to collect.

http://www.cse.lk/cmt/upload_report_file/721_1287570071130.pdf

The Carrying Value of Fuel wood (Timber) Plantations which reflects as Rs. 110.667 Mn.as at 30th September 2010,have been revalued by an independent Qualified Valuer and the revaluation has not yet been ...incorporated into the Financial Statements. The revalued amount is Rs.2,261,054,393/=
caculate the revaluation surplus.

According to quarterly reports, the valuation comes around 82.60. that means 200% increase.

dhamm · 2 Re: Watch MADU Tue Feb 08, 2011 11:00 am

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price band good.. i collected 10% down. Smile

marketsee · 3 Re: Watch MADU Tue Feb 08, 2011 11:05 am

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I collected 5% down because of the problem of Direct FN and CDAX,I cant buy or sell this stock from those system Mad

Meta Trader · 4 Re: Watch MADU Tue Feb 08, 2011 11:05 am

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yes . please some one place a order at 31.30 Twisted Evil

Meta Trader · 5 Re: Watch MADU Tue Feb 08, 2011 11:07 am

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Meta Trader wrote:yes . please some one place a order at 31.30

already collected at 33 and sold at 34.90 Twisted Evil

again collected at 32.40 Twisted Evil

optimistic · 6 Re: Watch MADU Tue Feb 08, 2011 11:39 am

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you are having a good time yourself, arent you meta trader? Wink

. I collected at 32-33 level. waiting for it to drop further down to collect more. sellers please panic Twisted Evil

maalinda · 7 Re: Watch MADU Tue Feb 08, 2011 11:54 am

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JUST a small question. Why anyone did not notice this timber thing before. Sep results has released months ago.. and why sudden rush ?

Meta Trader · 8 Re: Watch MADU Tue Feb 08, 2011 12:01 pm

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maalinda wrote:JUST a small question. Why anyone did not notice this timber thing before. Sep results has released months ago.. and why sudden rush ?

i doubt that too .
if it real i wonder why didn't we see any directors dealing ?
could be another manipulation . Twisted Evil

mono · 9 Re: Watch MADU Tue Feb 08, 2011 12:03 pm

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people did realize it back then. but nobody thought they's actually be able to sell this stuff or even if the valuation is acceptable. I mean 2.2 Bn is alot

dhamm · 10 Re: Watch MADU Tue Feb 08, 2011 12:04 pm

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mono, do you really think it will hit 60?

mono · 11 Re: Watch MADU Tue Feb 08, 2011 12:07 pm

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dhamm wrote:mono, do you really think it will hit 60?

i don't know.

dhamm · 12 Re: Watch MADU Tue Feb 08, 2011 12:08 pm

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mono wrote:

dhamm wrote:mono, do you really think it will hit 60?

i don't know.

RDS · 13 Re: Watch MADU Tue Feb 08, 2011 12:12 pm

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What i feel this,

There are some group doing this. pushing share value to ultimate end & wash their hands.
look recent financial report. all done well. but share value not upward then. Coz already they had push to maximum.

its look like same for MADU, they are targetting fire wood value & push this share.

innam · 14 Re: Watch MADU Tue Feb 08, 2011 12:16 pm

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maalinda wrote:JUST a small question. Why anyone did not notice this timber thing before. Sep results has released months ago.. and why sudden rush ?

those who bothered to look at the financial statements definitely noticed the timber thing- of course it was only a note regarding the fact that the revaluation took place subsequent to the quarter end.
the "Market" only noticed MADU when the plantation rally started and when news leaked regarding the December statements. This sudden rush is the market rushing to buy before Decemeber statements. MADU was an easy buy at 18 levels but whether it's an easy buy at 30 levels is a different matter.

Leader · 15 dont knw Tue Feb 08, 2011 1:24 pm

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dnt knw whether it is increase or not. but i can clearly say that its net book value will be be largely increased after the re valuation upto minimum of Rs 65. and also u can see the share price of the every plantation company is less than its market value.this is not rocket science. every1 can understand this.

cse.alpha · 16 Re: Watch MADU Tue Feb 08, 2011 3:20 pm

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From an earnings and dividends perspective, MADU surely is one of the worst performing plantation stocks - no dividends during past decade (although management fees have been charged - at reduced levels recently), and it has been bleeding heavily the past few years. It is a pure tea plantation company, with serious working capital constraints, and the impending wage hike from April 2011 will hurt it badly.

In a good period for most plantations, MADU reported a net loss of Rs98 mn for the 9m ended 30th Sept 2010, and its book value per share was Rs9

The timber revaluation, if brought into its books, will boost book value per share to around Rs83, but is book value the most useful or realistic way to evaluate a plantation company? Earnings, cash flow and dividends based methods, together with crop mix analysis, are surely more important. And remember that MADU is likely to continue to report losses during the next few quarters, which will bring down its book value continuously.

Monetising the book value of timber may also prove to be challenging and long term, and conversion of its book value into cash will hold the key.

Book value is much more important from a takeover perspective though, and perhaps DIST and Stassens, who jointly control 66% of company, may consider an exit - using the discount to book value as the key selling point. Group company SPEN recently exited from its investment in TPL incidentally.

In the meantime, the share's relatively low absolute share price and the fact that only 30,000 shares were needed to be among the largest 20 shareholders as at 30th Sept 2010 should keep the traders interested.

salt · 17 Re: Watch MADU Tue Feb 08, 2011 3:58 pm

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ELPL has a foresty. But, they ahve not revalued yet.

mono · 18 Re: Watch MADU Tue Feb 08, 2011 4:23 pm

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salt wrote:ELPL has a foresty. But, they ahve not revalued yet.

great! that's exactly what we need these days. everyone going around cutting trees.

Very Happy

P.S: salt, are u a guy or a girl

salt · 19 Re: Watch MADU Tue Feb 08, 2011 5:00 pm

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a boy

I'm sorry for the previous post. It not clear whether they have revalued or not. first impression was that it's not revlaued, but when i repeat the reading , looks not clear.

However, at the end, there is segment reporting. It is mentined- segmant assets value of Oil Palm & Other crop Rs 102 mn. It is unlikely that foresty is revalued

This is extract from the MD's review
http://www.cse.lk/cmt/upload_report_file/707_1280743048066.pdf

Another valuable asset in the company is its timber and forestry base in the upcountry (UC) estates. This asset is significantly growing in value each year and will be a good cashflow provider to EPP in future years. Together with expanding tea, rubber and palm oil land, the company expects to accelerate its expansion on hydropower and commercial forestry to take the company to a stronger footing. The JV rubber wood furniture factory – Elpitiya Lifestyle Solutions (Pvt) Ltd (ELS) and the branded tea operation Harrow Ceylon Choice (HCC) has unfortunately not come upto expectations. The rising cost of rubber wood affected the cost of
the end product in ELS, which affected viability in the early years. However, with the rise in international price of rubber wood, we see this situation gradually changing with greater participation and involvement from the JV partner. We have already seen an increase in orders for rubber wood for exports at the tail end of the year.

marketanalyst · 20 at malinda Wed Feb 09, 2011 8:42 am

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no analyst would have Thought that valuation of 2.2 billion be justifiable. Now it has bcome real. Analysts who havn't figure out dis thing, seems trying to make adverse comment to cover their inability.

million · 21 Re: Watch MADU Mon Feb 14, 2011 12:28 am

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do you still think madu will hit 70. it seems the buying has reduced

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Watch MADU

1 Watch MADU Tue Feb 08, 2011 10:46 am

Leader

2 Re: Watch MADU Tue Feb 08, 2011 11:00 am

dhamm

3 Re: Watch MADU Tue Feb 08, 2011 11:05 am

marketsee

4 Re: Watch MADU Tue Feb 08, 2011 11:05 am

Meta Trader

5 Re: Watch MADU Tue Feb 08, 2011 11:07 am

Meta Trader

6 Re: Watch MADU Tue Feb 08, 2011 11:39 am

optimistic

7 Re: Watch MADU Tue Feb 08, 2011 11:54 am

maalinda

8 Re: Watch MADU Tue Feb 08, 2011 12:01 pm

Meta Trader

9 Re: Watch MADU Tue Feb 08, 2011 12:03 pm

mono

10 Re: Watch MADU Tue Feb 08, 2011 12:04 pm

dhamm

11 Re: Watch MADU Tue Feb 08, 2011 12:07 pm

mono

12 Re: Watch MADU Tue Feb 08, 2011 12:08 pm

dhamm

13 Re: Watch MADU Tue Feb 08, 2011 12:12 pm

RDS

14 Re: Watch MADU Tue Feb 08, 2011 12:16 pm

innam

15 dont knw Tue Feb 08, 2011 1:24 pm

Leader

16 Re: Watch MADU Tue Feb 08, 2011 3:20 pm

cse.alpha

17 Re: Watch MADU Tue Feb 08, 2011 3:58 pm

salt

18 Re: Watch MADU Tue Feb 08, 2011 4:23 pm

mono

19 Re: Watch MADU Tue Feb 08, 2011 5:00 pm

salt

20 at malinda Wed Feb 09, 2011 8:42 am

marketanalyst

21 Re: Watch MADU Mon Feb 14, 2011 12:28 am

million

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